14.
But a lot depends on the round
Series 2012 Q1'2013
Series B 6% 4%
Series C 16% 5%
Series D 15% 19%
Series E+ 22% 18%
20%
25%
Series E+ 22% 18%
0%
5%
10%
15%
Series B Series C Series D Series E+
DownRounds
2012
Q1'2013
 Later rounds = more chance of a down round
 Probably due to exit difficulties
 Founders suffer more than investors
Series B Series C Series D Series E+

19.
Growth and Recognition
of Seed Investments
 Three of the six largest VC investors Three of the six largest VC investors
(by number of deals) were seed focused funds
 500 Startups, Y Combinator, First Round Capital
 Between 2009 and 2012
 Number of seed financings almost quadrupled
to 1800to 1800
 Number of seed investments doubled to
31% of the total number of VC deals
 Number of companies funded by accelerators
increased five-fold to 1200

24.
The Hard Part is Getting
to the Next Round …
 From 2009 to 2012 From 2009 to 2012
 Number of seed financings increased from
472 to 1749
 Number of Series A rounds only increased
from 418 to 692

25.
Seed Bubble?
 45% of companies that raised their seed
round in 2010 raised a Series A Round byround in 2010 raised a Series A Round by
the end of 2011
 27% of companies that raised their seed
round in 2011 raised a Series A Round by
the end of 2012
 The rest? Many, if not most, have shut down. The rest? Many, if not most, have shut down.

34.
Infrequently Used Terms
 Investors get a board seat in ≈2% of deals Investors get a board seat in ≈2% of deals
 Notes are secured in ≈2% of deals
 Notes include warrants in ≈6% of deals
 Notes are senior to other debt in ≈10% of deals